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MY RULES: 5 MINUTE INTRADAY TRADING SYSTEM ADDITIONAL GUIDELINES/ISSUES TO CONSIDER

Adapted from Original developer – Phillip Nel 4ed – Oct 2007 7. 7.1 ADDITIONAL ISSUES TO CONSIDER: Look for activities on the wrong/other side of the 21MA: • Do not get involved in No1 and No2 - too much movement below the 21EMA (be on the lookout for tails of closures on the wrong side of the 21MA like that) • Look at the set-ups in No3 and No4 – beauties within the war zone

2 Look for the speed of the trend: Phillip’s advice: .7.

Chart to explain Phillip’s advice: .

Another example in the change of the trend speed with excellent trade set-ups after 06:00: .

Rules stay the same. Sometimes the move downwards is fast and then wait for a slowdown before entering. . • You will find that it is only often that the 10EMA and 21EMA are more than 6 pips from one another.3 First pull-back to 10MA – fast speed: • Consider taking the first trade during the fast speed trend (comply with set-up criteria) when price have a pull back to 10EMA – price tends to bounce off 10EMA first • Be careful – very risky – look at the example • When the 50SMA is clearly in a trend. When the trend is very strong it does not normally pull back deep into the zone. With time you will get the feel for it.7. wait for the price to pull back into the zone. In most of those cases the trend is very strong upwards and then there is not a pullback to the 21EMA. Look at history and you will see that. If it goes through the 21EMA wait for the next bar to move back into the zone and then enter. If two to three bars in a strong trend find support on the 10EMA just close your eyes and enter. Try to enter anything from 2 pips inside the zone.

It means 2-3 pips difference between the two.7. • Not necessary for second candle to open or close in the war zone • Entry should be made as close to the 21EMA as possible. Example of 2 or more candles within the war zone before entering a trade: . When the move is quick halfway between the two is OK while when the move is slow closer to the 21EMA.4 Wait for two or more candles to enter trade/war zone (between 10 & 21MA): • Wait for two candles to make contact with/enter the war/trade zone on the chart before consider entering a trade.

5 Look for the width between the 10 & 21 MA: • Be careful when looking at the width between the 10 & 21MAs. • The angle is very important but look at this example of the GBP forming.7. . Phillip won' t get involve at all. The 21EMA and 50SMA are too close together and the angle between the two is not opening up but running parallel.

6 Look for the length of the current trend: • Trends tend to come in beads -(30.7. 60. 90 & 120) • Be careful when the current trend is running for 60-100 pips without a pull-back – trend could run out of steam shortly • Indication of a run out of steam – Uptrend and price did not close higher than the previous high indicating • Look at this example of an earlier trade of mine – wrong!!!!!!!!!!!!!!!!!! .

7 5-6 candle rule: Profit not triggered within 5 candles. • Phillip’s comment on this trade of mine (example below): “It was one of those setups that looks OK eventually. Look at the 21EMA flattening out. If there is no movement in 5-6 bars get out as close to breakeven as possible. consider closing the trade: • If your profit is not triggered within 5-6 (25-30 minutes) candles.7. consider taking profit/break-even as soon as possible.” .

If it retrace back into the zone without triggering my breakeven I re-enter the other 50% and take 50% again till the remaining 50% is closed at breakeven. After one win and one loss i will trade one more if it comes.10 7. Don' t try to get even with the market. When the move is steady downwards but many pips it might give three to four.9 7.8 Close trade when there is close above/below the 21MA: • If there is a close of a candle above the 21EMA in case of a short trade and below the 21MA in case of a long trade.11 .” 7.7. After two losses I am out. consider taking profit quickly or take break-even trade.” Two consecutive losses: • After two consecutive losses. stop trading for the day Alternative profit taking • Phillip: “If the move is strong I will take 50% profit and set the rest at breakeven. After two wins for the day I am out. • Consider not taking any more trades or wait for pull back from 50SMA Only two trades: • Only take the first two trade set-up in the London trade time and the first two trade set-up in the USA trade time per pair • Phillip: “A move normally provides two trades. The London session might give two and the US session might give two. You then get emotional and that is looking for trouble.

1 TRADE EXAMPLES: EURU$ made three trades. No 1 was right. No 2 was wrong and No 3 was right ending up 10pips for the day.8. 8. .

.8.2 Nice pullback into the zone after it went above 21EMA with a inside bar therefore I took the next bar with target +8 pips.

8. preferably halfway if possible. . Phllip enters somewhere in between the 2 EMA' s.3 It is all about when the market is moving that by entering when a pullback occur in between the 10EMA and 21EMA that the odds are in your favour to have 8 out of 10 winners. it gave 2 trades. Just look at Friday late.

8. .4 Look at this one on the GbpUsd and let it run.

5 Phillip entered the GbpUsd @ 18:10 at 1. Took profit at 23pips.” Update: I see that the deal was actually closed for 20pips.8.9445 because of several lower highs and angle signal at zero. . Phllip: “I knew due to the movement that the move could be more than 10 pips so I put myself at breakeven after 10pips gain and let it run.

6 Classic change from slow speed to medium speed trend with two trade set-ups: 8.7 2 examples in medium speed and a “no trade” set-up thereafter .8.

9 Examples of mixed successes – do expect some negative trade & losses .8.

10 Another example of a 2 bar entry strategy .8.

8.11 Look at resistance found on 10MA .

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